What was the net loss for Best In Class Education Center in 2023?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
to be cash equivalents. As of December 31, 2024 and 2023, the Company had approximately $4,056 and $58,720 respectively in cash in its bank accounts.
4. ACCOUNTS RECEIVABLE
As of December 31, 2024 and 2023 accounts receivable consisted of the following:
| Royalty receivable | $ | 15,521 | $ 13,219 |
|---|---|---|---|
| Initial franchise fees receivable | 30,000 | ||
| Transfer fee receivable | 26,000 | 5,000 | |
| Other franchise-related fees receivable | 10,594 | - | |
| Brand fund income receivable | 2,629 | ||
| Total Accounts Receivable | $ | 84,744 | $ 18,219 |
5. RELATED PARTY TRANSACTIONS
BIC Franchise System Corporation and Best in Class Education, LLC are affiliated entities under common ownership. As of December 31, 2024, and 2023, the Compan
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, as of December 31, 2024, and 2023, the company had outstanding receivables from its affiliate amounting to $14,527 and $0, respectively. These receivables represent shared revenue collected on behalf of BIC Franchise System Corporation. Additionally, the company had outstanding receivables from its owners amounting to $24,358 and $0 for the same periods, representing amounts due from the owners for obligations incurred during the normal course of business. The company also conducts business with Lam's Tutoring Service, Inc., where a member of the company has an ownership interest. As of December 31, 2024, and 2023, the entity has a balance due to Lam's Tutoring Service, Inc. of $12,747 and $0, respectively.
This information indicates financial interactions between Best In Class Education Center and related parties, including its affiliate, owners, and Lam's Tutoring Service, Inc. These transactions could influence the company's financial performance and stability. For a prospective franchisee, understanding these related-party transactions is crucial for assessing the financial health and potential risks associated with the franchise. It is important to note that this excerpt does not provide the net loss for Best In Class Education Center in 2023.
To determine the net loss for 2023, a prospective franchisee should review the company's financial statements, typically found in Item 21 of the FDD. If the net loss is not explicitly stated, it can be calculated from the income statement by subtracting total expenses from total revenues. Additionally, it would be prudent to consult with a financial advisor to fully understand the implications of these related-party transactions and the overall financial condition of Best In Class Education Center.